Traders in Chandni Chowk’s Katra Neel market have alleged that the Municipal Corporation of Delhi (MCD) has “illegally sealed” eight shops in the area, even though the establishments have been “operating legally” under commercial licenses for decades.

The sealing was carried out on Thursday in compliance with the Supreme Court’s directives to identify and stop the commercial use of residential properties in the walled city. The top court issued the order last month on a petition alleging that residential buildings in the area were being misused for business activities, causing congestion and safety risks. The petitioner is a resident of Gali Ghanteshwar in Katra Neel, where two shops were sealed.

Shop owners said they had “paid conversion charges” and received “necessary clearances” to run commercial units in residential premises. “Our shops have existed here for decades. We pay GST, property tax, and electricity bills under the commercial category,” said a trader who owns a garment shop in Gali Ghanteshwar.

An MCD official said, “The top court has ordered that no further conversion of residential houses into commercial complexes... the sealing is in line with this direction.” The next hearing in the matter is scheduled for October 27.